Kellogg shutters distribution centers, lays off workers

Cereal giant Kellogg's to cut 400-plus Texas jobs

Cereal giant Kellogg's to cut 400-plus Texas jobs

The warehouse model already is used in 75 percent of Kellogg's USA sales, including the Pringles and frozen foods, the company said.

While the layoffs impact workers in the company's snacks operation, Kellogg and other cereal makers are facing broader challenges as consumers shy away from processed cereals.

Cereal and snack food giant Kellogg Co. said Tuesday it is shuttering a snacks distribution center in far east Fort Worth and will lay off 201 employees by mid-August.

The company notified agencies in several states of the closures with the past week.

Earlier this year, Kellogg said it would close almost 40 distribution centers and use a warehouse system. The company says it is changing how it ships products.

The company said the move would free up money to invest in activities like advertising that more directly help boost sales.

The Battle Creek, MI-based food company intends to close two distribution sites in Texas, cutting over 400 workers when layoffs begin this July, the Dallas Morning News reported, citing filings from the Texas Workforce Commission.

When the cuts were first announced in February, Kellogg said 30 full-time jobs would be affected at the Earth City facility, which is located at 4315 Green Ash Drive. It will close a center in Sharonville, Ohio, and lay off almost 250 employees.

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